SlideShare ist ein Scribd-Unternehmen logo
1 von 13
Downloaden Sie, um offline zu lesen
July 21, 2008




By John Reddan, Managing Director




The Perfect U.S. Economic Storm: Asset Deflation, Commodity
Inflation and the Expiration of the “Greenspan Put”.

Goldilocks does not live here anymore. The US economy today is the mirror image of
the late 1990’s so-called “Goldilocks economy” which was characterized by low
commodity inflation and relatively strong growth. Today, we have high commodity
inflation combined with very slow growth. It is the “Bad Wolf” economy. In the late
1990’s, the US economy experienced asset inflation combined with commodity deflation,
while today it is experiencing commodity inflation combined with asset deflation. This is
a lethal combination for US consumer spending and current high corporate profit margins
(Chart 1). It will likely tip the US economy into a recession and erode those record profit
margins.

Chart 1: Corporate profits b
The Perfect Us Economic Storm
The Perfect Us Economic Storm
The Perfect Us Economic Storm
The Perfect Us Economic Storm
The Perfect Us Economic Storm
The Perfect Us Economic Storm
The Perfect Us Economic Storm
The Perfect Us Economic Storm
The Perfect Us Economic Storm
The Perfect Us Economic Storm
The Perfect Us Economic Storm
The Perfect Us Economic Storm

Weitere ähnliche Inhalte

Was ist angesagt?

American economy, 3 important aspects
American economy,  3 important aspectsAmerican economy,  3 important aspects
American economy, 3 important aspectsmichellii
 
Causes of the Depression
Causes of the DepressionCauses of the Depression
Causes of the DepressionKrista Leh
 
nuweahermarketslinkedaug26
nuweahermarketslinkedaug26nuweahermarketslinkedaug26
nuweahermarketslinkedaug26Thomas Chisholm
 
Important Economic Terms - Kathy Bostjancic
Important Economic Terms - Kathy BostjancicImportant Economic Terms - Kathy Bostjancic
Important Economic Terms - Kathy BostjancicKathleen Bostjancic
 
Collapse and stabilisation instead of degrowth?
Collapse and stabilisation  instead of degrowth?Collapse and stabilisation  instead of degrowth?
Collapse and stabilisation instead of degrowth?Goteo / Platoniq
 
What Is Recession
What Is RecessionWhat Is Recession
What Is Recessionsaurabh119
 
CHC: A Quarterly Economic Update Jan 2010
CHC: A Quarterly Economic Update Jan 2010CHC: A Quarterly Economic Update Jan 2010
CHC: A Quarterly Economic Update Jan 2010Mercatus Center
 
G20 & The U.S. Dollar Policy - A Presentation
G20 & The U.S. Dollar Policy - A PresentationG20 & The U.S. Dollar Policy - A Presentation
G20 & The U.S. Dollar Policy - A PresentationEcon Matters
 
Sunus Teknikleri
Sunus TeknikleriSunus Teknikleri
Sunus Tekniklericexep26
 
US Crisis And The Dollar
US Crisis And The DollarUS Crisis And The Dollar
US Crisis And The DollarKaustabh Basu
 
4/29 - 4/30 Chapter 12.2 Notes
4/29 - 4/30 Chapter 12.2 Notes4/29 - 4/30 Chapter 12.2 Notes
4/29 - 4/30 Chapter 12.2 NotesBarry Wiseman
 
The 2008 Global Economic Crisis Causes Cures and Curads
The 2008 Global Economic Crisis Causes Cures and CuradsThe 2008 Global Economic Crisis Causes Cures and Curads
The 2008 Global Economic Crisis Causes Cures and CuradsSevenPillarsInstitute
 
WHAT IS RECESSION - A SMALL UNDERSTANDING / MEANING
WHAT IS RECESSION - A SMALL UNDERSTANDING / MEANING WHAT IS RECESSION - A SMALL UNDERSTANDING / MEANING
WHAT IS RECESSION - A SMALL UNDERSTANDING / MEANING Amit Jhunjhunwala
 
current economic and financial crisis
current economic and financial crisiscurrent economic and financial crisis
current economic and financial crisisoctoblue
 
A Quarterly Economic Update March 2010
A Quarterly Economic Update March 2010A Quarterly Economic Update March 2010
A Quarterly Economic Update March 2010Mercatus Center
 
A Quarterly Economic Update March 2010
A Quarterly Economic Update March 2010A Quarterly Economic Update March 2010
A Quarterly Economic Update March 2010Mercatus Center
 

Was ist angesagt? (20)

American economy, 3 important aspects
American economy,  3 important aspectsAmerican economy,  3 important aspects
American economy, 3 important aspects
 
Causes of the Depression
Causes of the DepressionCauses of the Depression
Causes of the Depression
 
Ipe03
Ipe03Ipe03
Ipe03
 
nuweahermarketslinkedaug26
nuweahermarketslinkedaug26nuweahermarketslinkedaug26
nuweahermarketslinkedaug26
 
Important Economic Terms - Kathy Bostjancic
Important Economic Terms - Kathy BostjancicImportant Economic Terms - Kathy Bostjancic
Important Economic Terms - Kathy Bostjancic
 
Recessions (презентация миррлиса)
Recessions (презентация миррлиса)Recessions (презентация миррлиса)
Recessions (презентация миррлиса)
 
Collapse and stabilisation instead of degrowth?
Collapse and stabilisation  instead of degrowth?Collapse and stabilisation  instead of degrowth?
Collapse and stabilisation instead of degrowth?
 
Recession
RecessionRecession
Recession
 
What Is Recession
What Is RecessionWhat Is Recession
What Is Recession
 
CHC: A Quarterly Economic Update Jan 2010
CHC: A Quarterly Economic Update Jan 2010CHC: A Quarterly Economic Update Jan 2010
CHC: A Quarterly Economic Update Jan 2010
 
Recession 2008
Recession 2008Recession 2008
Recession 2008
 
G20 & The U.S. Dollar Policy - A Presentation
G20 & The U.S. Dollar Policy - A PresentationG20 & The U.S. Dollar Policy - A Presentation
G20 & The U.S. Dollar Policy - A Presentation
 
Sunus Teknikleri
Sunus TeknikleriSunus Teknikleri
Sunus Teknikleri
 
US Crisis And The Dollar
US Crisis And The DollarUS Crisis And The Dollar
US Crisis And The Dollar
 
4/29 - 4/30 Chapter 12.2 Notes
4/29 - 4/30 Chapter 12.2 Notes4/29 - 4/30 Chapter 12.2 Notes
4/29 - 4/30 Chapter 12.2 Notes
 
The 2008 Global Economic Crisis Causes Cures and Curads
The 2008 Global Economic Crisis Causes Cures and CuradsThe 2008 Global Economic Crisis Causes Cures and Curads
The 2008 Global Economic Crisis Causes Cures and Curads
 
WHAT IS RECESSION - A SMALL UNDERSTANDING / MEANING
WHAT IS RECESSION - A SMALL UNDERSTANDING / MEANING WHAT IS RECESSION - A SMALL UNDERSTANDING / MEANING
WHAT IS RECESSION - A SMALL UNDERSTANDING / MEANING
 
current economic and financial crisis
current economic and financial crisiscurrent economic and financial crisis
current economic and financial crisis
 
A Quarterly Economic Update March 2010
A Quarterly Economic Update March 2010A Quarterly Economic Update March 2010
A Quarterly Economic Update March 2010
 
A Quarterly Economic Update March 2010
A Quarterly Economic Update March 2010A Quarterly Economic Update March 2010
A Quarterly Economic Update March 2010
 

Andere mochten auch

Paper to people:: the fine art of designing digital campaign experiences with...
Paper to people:: the fine art of designing digital campaign experiences with...Paper to people:: the fine art of designing digital campaign experiences with...
Paper to people:: the fine art of designing digital campaign experiences with...Aynne Valencia
 
Webservicesprintversion
WebservicesprintversionWebservicesprintversion
Webservicesprintversionnandy popu
 
Automagically: A Primer to The Connection System of Things
Automagically: A Primer to The Connection System of ThingsAutomagically: A Primer to The Connection System of Things
Automagically: A Primer to The Connection System of ThingsAynne Valencia
 
第八章解答
第八章解答第八章解答
第八章解答jiannrong
 
第五章解答
第五章解答第五章解答
第五章解答jiannrong
 
Social Media And Business
Social Media And BusinessSocial Media And Business
Social Media And BusinessBank of Ireland
 
Formative assessment slides
Formative assessment slidesFormative assessment slides
Formative assessment slidesSteve Wise
 

Andere mochten auch (20)

Paper to people:: the fine art of designing digital campaign experiences with...
Paper to people:: the fine art of designing digital campaign experiences with...Paper to people:: the fine art of designing digital campaign experiences with...
Paper to people:: the fine art of designing digital campaign experiences with...
 
презентация23
презентация23презентация23
презентация23
 
Webservicesprintversion
WebservicesprintversionWebservicesprintversion
Webservicesprintversion
 
han
hanhan
han
 
презентация1 (2)
презентация1 (2)презентация1 (2)
презентация1 (2)
 
Superfly
SuperflySuperfly
Superfly
 
поп группа «ранетки»
поп группа «ранетки»поп группа «ранетки»
поп группа «ранетки»
 
Automagically: A Primer to The Connection System of Things
Automagically: A Primer to The Connection System of ThingsAutomagically: A Primer to The Connection System of Things
Automagically: A Primer to The Connection System of Things
 
TWERM
TWERMTWERM
TWERM
 
золотое кольцо россии
золотое кольцо россиизолотое кольцо россии
золотое кольцо россии
 
Patrimonios Naturales de América
Patrimonios Naturales de AméricaPatrimonios Naturales de América
Patrimonios Naturales de América
 
第八章解答
第八章解答第八章解答
第八章解答
 
Patrimonios Culturales de América
Patrimonios Culturales de AméricaPatrimonios Culturales de América
Patrimonios Culturales de América
 
масленица
масленицамасленица
масленица
 
第五章解答
第五章解答第五章解答
第五章解答
 
Tournus 2012
Tournus 2012Tournus 2012
Tournus 2012
 
посвящение в юные пешеходы
посвящение в юные пешеходыпосвящение в юные пешеходы
посвящение в юные пешеходы
 
спортивный праздник
спортивный праздникспортивный праздник
спортивный праздник
 
Social Media And Business
Social Media And BusinessSocial Media And Business
Social Media And Business
 
Formative assessment slides
Formative assessment slidesFormative assessment slides
Formative assessment slides
 

Ähnlich wie The Perfect Us Economic Storm

Economic Policies And The Great Recession Of 2008
Economic Policies And The Great Recession Of 2008Economic Policies And The Great Recession Of 2008
Economic Policies And The Great Recession Of 2008Sheena Crouch
 
The Recession Of A Recession
The Recession Of A RecessionThe Recession Of A Recession
The Recession Of A RecessionJessica Spell
 
Sub prime & eurozone crisis
Sub prime & eurozone crisisSub prime & eurozone crisis
Sub prime & eurozone crisisSiddhant Agarwal
 
Recession-US & Japan
Recession-US & JapanRecession-US & Japan
Recession-US & JapanGaurav Surana
 
Inflation Why To Worry Or Not
Inflation   Why To Worry Or NotInflation   Why To Worry Or Not
Inflation Why To Worry Or NotMarshall Gittler
 
The Labor Movement Of The United States Essay
The Labor Movement Of The United States EssayThe Labor Movement Of The United States Essay
The Labor Movement Of The United States EssayKaren Gilchrist
 
The Great Recession In The Year 2008
The Great Recession In The Year 2008The Great Recession In The Year 2008
The Great Recession In The Year 2008Kimberly Jones
 
The Government Should Respond To The Great Recession
The Government Should Respond To The Great RecessionThe Government Should Respond To The Great Recession
The Government Should Respond To The Great RecessionKimberly Berger
 
U.S. Economic Crisis Essay
U.S. Economic Crisis EssayU.S. Economic Crisis Essay
U.S. Economic Crisis EssayLaura Olson
 
The Cause And Effects Of The Great Recession
The Cause And Effects Of The Great RecessionThe Cause And Effects Of The Great Recession
The Cause And Effects Of The Great RecessionNicole Savoie
 
The Economic Recession Of Italy
The Economic Recession Of ItalyThe Economic Recession Of Italy
The Economic Recession Of ItalyKelly Gomez
 
Hyperinflation in Zimbabwe
Hyperinflation in Zimbabwe Hyperinflation in Zimbabwe
Hyperinflation in Zimbabwe Rachna Gupta
 
Q4_2015_2016_Outlook
Q4_2015_2016_OutlookQ4_2015_2016_Outlook
Q4_2015_2016_OutlookDebi Myers
 
Report of mangerail
Report of mangerailReport of mangerail
Report of mangerailsaad ali
 

Ähnlich wie The Perfect Us Economic Storm (20)

Economic Policies And The Great Recession Of 2008
Economic Policies And The Great Recession Of 2008Economic Policies And The Great Recession Of 2008
Economic Policies And The Great Recession Of 2008
 
The Recession Of A Recession
The Recession Of A RecessionThe Recession Of A Recession
The Recession Of A Recession
 
Sub prime & eurozone crisis
Sub prime & eurozone crisisSub prime & eurozone crisis
Sub prime & eurozone crisis
 
Recession-US & Japan
Recession-US & JapanRecession-US & Japan
Recession-US & Japan
 
Inflation Why To Worry Or Not
Inflation   Why To Worry Or NotInflation   Why To Worry Or Not
Inflation Why To Worry Or Not
 
The Labor Movement Of The United States Essay
The Labor Movement Of The United States EssayThe Labor Movement Of The United States Essay
The Labor Movement Of The United States Essay
 
The Great Recession In The Year 2008
The Great Recession In The Year 2008The Great Recession In The Year 2008
The Great Recession In The Year 2008
 
The Government Should Respond To The Great Recession
The Government Should Respond To The Great RecessionThe Government Should Respond To The Great Recession
The Government Should Respond To The Great Recession
 
Essay On Economic Crisis
Essay On Economic CrisisEssay On Economic Crisis
Essay On Economic Crisis
 
Tiểu luận tiếng Anh Tình hình lạm phát tại Mỹ
Tiểu luận tiếng Anh Tình hình lạm phát tại MỹTiểu luận tiếng Anh Tình hình lạm phát tại Mỹ
Tiểu luận tiếng Anh Tình hình lạm phát tại Mỹ
 
U.S. Economic Crisis Essay
U.S. Economic Crisis EssayU.S. Economic Crisis Essay
U.S. Economic Crisis Essay
 
The Cause And Effects Of The Great Recession
The Cause And Effects Of The Great RecessionThe Cause And Effects Of The Great Recession
The Cause And Effects Of The Great Recession
 
The Economic Recession Of Italy
The Economic Recession Of ItalyThe Economic Recession Of Italy
The Economic Recession Of Italy
 
American Economic Crisis Essay
American Economic Crisis EssayAmerican Economic Crisis Essay
American Economic Crisis Essay
 
Hyperinflation in Zimbabwe
Hyperinflation in Zimbabwe Hyperinflation in Zimbabwe
Hyperinflation in Zimbabwe
 
Q4_2015_2016_Outlook
Q4_2015_2016_OutlookQ4_2015_2016_Outlook
Q4_2015_2016_Outlook
 
The Great Recession
The Great RecessionThe Great Recession
The Great Recession
 
Financial Crisis Essay
Financial Crisis EssayFinancial Crisis Essay
Financial Crisis Essay
 
Report of mangerail
Report of mangerailReport of mangerail
Report of mangerail
 
The Economic Crisis Of Today
The Economic Crisis Of TodayThe Economic Crisis Of Today
The Economic Crisis Of Today
 

Kürzlich hochgeladen

Slideshare - ONS Economic Forum Slidepack - 18 March 2024.pptx
Slideshare - ONS Economic Forum Slidepack - 18 March 2024.pptxSlideshare - ONS Economic Forum Slidepack - 18 March 2024.pptx
Slideshare - ONS Economic Forum Slidepack - 18 March 2024.pptxOffice for National Statistics
 
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...Matthews Bantsijang
 
Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707harshan90
 
Work and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingWork and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingHenry Tapper
 
Contracts with Interdependent Preferences
Contracts with Interdependent PreferencesContracts with Interdependent Preferences
Contracts with Interdependent PreferencesGRAPE
 
Hungarys economy made by Robert Miklos
Hungarys economy   made by Robert MiklosHungarys economy   made by Robert Miklos
Hungarys economy made by Robert Miklosbeduinpower135
 
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdfAdnet Communications
 
Monthly Market Risk Update: March 2024 [SlideShare]
Monthly Market Risk Update: March 2024 [SlideShare]Monthly Market Risk Update: March 2024 [SlideShare]
Monthly Market Risk Update: March 2024 [SlideShare]Commonwealth
 
Introduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an EntrepreneurIntroduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an Entrepreneurabcisahunter
 
The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?Stephen Perrenod
 
What Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AIWhat Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AI360factors
 
Taipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for TourismTaipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for TourismBrian Lin
 
Buy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptxBuy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptxPrecize Formely Leadoff
 
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGeckoRWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGeckoCoinGecko
 
Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024Guillaume Ⓥ Sarlat
 
The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...Antonis Zairis
 

Kürzlich hochgeladen (20)

Slideshare - ONS Economic Forum Slidepack - 18 March 2024.pptx
Slideshare - ONS Economic Forum Slidepack - 18 March 2024.pptxSlideshare - ONS Economic Forum Slidepack - 18 March 2024.pptx
Slideshare - ONS Economic Forum Slidepack - 18 March 2024.pptx
 
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
 
Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707
 
Work and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingWork and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB funding
 
Contracts with Interdependent Preferences
Contracts with Interdependent PreferencesContracts with Interdependent Preferences
Contracts with Interdependent Preferences
 
Hungarys economy made by Robert Miklos
Hungarys economy   made by Robert MiklosHungarys economy   made by Robert Miklos
Hungarys economy made by Robert Miklos
 
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
 
Monthly Market Risk Update: March 2024 [SlideShare]
Monthly Market Risk Update: March 2024 [SlideShare]Monthly Market Risk Update: March 2024 [SlideShare]
Monthly Market Risk Update: March 2024 [SlideShare]
 
Introduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an EntrepreneurIntroduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an Entrepreneur
 
Commercial Bank Economic Capsule - March 2024
Commercial Bank Economic Capsule - March 2024Commercial Bank Economic Capsule - March 2024
Commercial Bank Economic Capsule - March 2024
 
The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?
 
What Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AIWhat Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AI
 
New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...
New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...
New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...
 
Taipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for TourismTaipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
 
Effects & Policies Of Bank Consolidation
Effects & Policies Of Bank ConsolidationEffects & Policies Of Bank Consolidation
Effects & Policies Of Bank Consolidation
 
Buy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptxBuy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptx
 
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGeckoRWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
 
Monthly Economic Monitoring of Ukraine No.230, March 2024
Monthly Economic Monitoring of Ukraine No.230, March 2024Monthly Economic Monitoring of Ukraine No.230, March 2024
Monthly Economic Monitoring of Ukraine No.230, March 2024
 
Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024
 
The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...
 

The Perfect Us Economic Storm

  • 1. July 21, 2008 By John Reddan, Managing Director The Perfect U.S. Economic Storm: Asset Deflation, Commodity Inflation and the Expiration of the “Greenspan Put”. Goldilocks does not live here anymore. The US economy today is the mirror image of the late 1990’s so-called “Goldilocks economy” which was characterized by low commodity inflation and relatively strong growth. Today, we have high commodity inflation combined with very slow growth. It is the “Bad Wolf” economy. In the late 1990’s, the US economy experienced asset inflation combined with commodity deflation, while today it is experiencing commodity inflation combined with asset deflation. This is a lethal combination for US consumer spending and current high corporate profit margins (Chart 1). It will likely tip the US economy into a recession and erode those record profit margins. Chart 1: Corporate profits b